Strategic Human Resource Management Essay Example | Topics and Well Written Essays - 3000 words - 3

Strategic Human Resource Management - Essay Example According to the paper  performance related pay system is considered as financial incentives offered to the employees, presenting high-level of performance and efficiency in competing the assigned tasks and duties. As a result of presentation of these rewards, the level of motivation and inner skills of the employees enhances to a significant extent that increases its effectiveness. Therefore, due to the presentation of high-ended performance, the productivity and corporate image of the organization increases in the market as compared to many other rival players. Along with this, the supremacy and ranking of the organization increases in the market thereby reducing the threat of new entrants or substitute products. This is extremely essential for an organization to retain its portfolio in this competitive market for a long period of time.From this discussion it is clear that  performance related pay systems or rewards are a sort of incentives offered by the management to its empl oyees in order to retain them for longer period of time. By doing so, the level of productivity and profitability of the organization might get enhanced resulting in amplification of its dominance in the market among others. It may be of two types such as monetary and non-monetary incentives.  Monetary incentives are of varied types such as bonuses, incentives, pension schemes, profit sharing, team awards, ownership, gain-sharing, salary supplements, improvement of job stabilities etc.